Mayor Ken Clarke said the purchase of the Australian Country Spinners plant by Bendigo Woollen Mills was a surprise.

“We didn’t see it coming, the council weren’t aware it was coming,” Cr Clarke said.

“It’s a shock to the community and we’ll be doing everything possible to support those affected, if there are redundancies.

“Our economic development team is looking at having a session with employees and seeing how we can help them down the track.”

Bendigo revealed on Monday it would buy the site which opened in 1923 as Wangaratta Woollen Mills.

Bendigo’s owner and founder Colin Walker told his hometown newspaper that the fate of the Wangaratta mill was unclear.

“Our plans for the Wangaratta site are now under review,” he said on Monday.

“We will have a better idea of the direction we will take after two months.”

Mr Walker has not replied to The Border Mail’s questions about the mill’s future.

Australian Country Spinners chief executive Brenda McGahan said the deal became official on October 2.

She could not say whether all 81 staff would remain.

“We have a talented staff and a knowledgeable staff and that’s why another company has decided to buy us, because they think we’re good and I’m hoping our staff will be able to transition into roles with Bendigo but it’s too soon to say,” Ms McGahan said.

She said there had been a “resurgence” in hand knitting and that added value to Country Spinners’ brands Panda, Cleckheaton and Patons.